A-LevelEconomicsGovernment InterventionFeb/Mar 2025Paper 1 Q131 Mark
To help achieve price stability, the government in country F operates a buffer stock scheme, with a minimum price of P₁ and a maximum price of P₂. The current demand and supply in the market is shown. [Figure showing a demand and supply curve, with prices P1, P2 and quantity points G, H, D, L, K, J] What should the government do to ensure the scheme is effective?
Abuy an amount equal to GH
Bbuy an amount equal to KJ
Cbuy an amount equal to LJ
Ddo nothing as the equilibrium price is below P₁
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of government intervention within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep